Forms of Business Structure - MOOC
As a credit analyst, it is important to be able differentiate the types of business structure and make appropriate credit decisions based on the risk and owners' liability of the business. This Forms of Business Structure course introduces the three most common business structures: sole proprietorships, partnerships, and corporations. It also covers two other types of business forms, limited liability companies (LLC) and franchises.
Upon completing this course, you will be able to:
- Distinguish between the three most common types of business structures
- Learn the definition, advantages and disadvantages of each business structure
- Understand the liability, rights, and restrictions of different structures
- Understand two other types of business forms, limited liability companies and franchises
- Explain how the legal structure of a company affects the lending process and lending decisions
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This is a useful overview of the main forms of business structure, especially the differences in owners’ liability, rights, and responsibilities. Choosing between a sole proprietorship, partnership, corporation, or LLC is not only a legal decision but can also affect financing and future business growth. In practice, it is also important to consider the jurisdiction and local requirements before setting up a company. Services such as those provided by Confidus Solutions can be helpful when assessing different incorporation options and corporate structures.
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